Jan. 17, 2014
/PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP are
the acquisition of CEC Entertainment (NYSE: CEC) by an affiliate of Apollo Global Management, LLC. (NYSE: APO). On
January 16, 2014
, the companies announced the signing of a definitive agreement pursuant to which
will commence a tender offer to acquire all outstanding shares of CEC for
per share in cash.
Is the Proposed Merger Best for CEC and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at CEC is undertaking a fair process to obtain maximum value and adequately compensate CEC shareholders in the merger.
As an initial matter, the
consideration represents a premium of 24.6% based on CEC's closing price on
, 2014. This one day premium is substantially below the average one week premium of over 33% for comparable transactions in the last three years.
October 31, 2013
, CEC released the company's financial results for the period ended
September 29, 2013
, reporting increases in total revenue and net income for the first nine months of 2013. Specifically, CEC reported an increase in total revenue of
, compared to the same period in 2012. The company also increased net income by 8.4%, or
, compared to the same period in 2012. In addition, CEC reported diluted earnings per share of
per share for the nine months ended
September 29, 2013
, as compared to
Given these facts, Robbins Arroyo LLP is examining whether the CEC board of directors are seeking to benefit themselves with their decision to sell the company to
now rather than allow shareholders to continue to participate in the company's continued success and future growth prospects.
CEC shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. CEC shareholders interested in information about their rights and potential remedies can contact attorney
Darnell R. Donahue
at (800) 350-6003,
, or via the
shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than
of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.